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General election 2019: Row breaks out over Labour spending plans | General election 2019: Row breaks out over Labour spending plans |
(about 2 hours later) | |
A spending row has broken out after the Conservative Party published what it claims would be the cost of a Labour government over five years. | |
The report, compiled by the party and not the Treasury, is based on a number of commitments from Labour's annual party conference but not its manifesto. | The report, compiled by the party and not the Treasury, is based on a number of commitments from Labour's annual party conference but not its manifesto. |
Chancellor Sajid Javid said Labour's proposals would leave the UK "on the brink of bankruptcy". | Chancellor Sajid Javid said Labour's proposals would leave the UK "on the brink of bankruptcy". |
But shadow chancellor John McDonnell condemned the report as "fake news". | But shadow chancellor John McDonnell condemned the report as "fake news". |
The Conservatives claim that Labour's policies would cost £1.2tn over the course of the next five years, if the party wins next month's general election. | The Conservatives claim that Labour's policies would cost £1.2tn over the course of the next five years, if the party wins next month's general election. |
The figure is based on costing Labour's 2017 manifesto and other pledges it has made since then. | The figure is based on costing Labour's 2017 manifesto and other pledges it has made since then. |
But the Labour Party has yet to publish its 2019 election manifesto, detailing its policies and spending proposals. | But the Labour Party has yet to publish its 2019 election manifesto, detailing its policies and spending proposals. |
Senior Labour figures will meet next weekend to decide which policies passed by the party's annual conference will become manifesto proposals for government, with some unlikely to make the cut. | Senior Labour figures will meet next weekend to decide which policies passed by the party's annual conference will become manifesto proposals for government, with some unlikely to make the cut. |
How accurate are the claims? | How accurate are the claims? |
There are problems with the Conservative Party's approach. | There are problems with the Conservative Party's approach. |
As Labour has not yet published its election manifesto, previous pledges may well be dropped, while new ones could still be added. | As Labour has not yet published its election manifesto, previous pledges may well be dropped, while new ones could still be added. |
That makes the job of accurately costing election pledges, at this stage of the campaign, impossible. | That makes the job of accurately costing election pledges, at this stage of the campaign, impossible. |
Just because certain policy positions passed at the Labour Party conference, there is no guarantee they will be adopted in the upcoming manifesto. | Just because certain policy positions passed at the Labour Party conference, there is no guarantee they will be adopted in the upcoming manifesto. |
There is also an issue with some of the costing. For example, the Conservatives cost Labour's renationalisation plans at £196bn. This is based on a Confederation of British Industry estimate, which was itself the subject of criticism. | There is also an issue with some of the costing. For example, the Conservatives cost Labour's renationalisation plans at £196bn. This is based on a Confederation of British Industry estimate, which was itself the subject of criticism. |
But it is certainly true that Labour wants to spend a lot more - something it has been upfront about. | But it is certainly true that Labour wants to spend a lot more - something it has been upfront about. |
Shadow chancellor John McDonnell says he wants to more than double UK investment spending to an extra £55bn a year. | Shadow chancellor John McDonnell says he wants to more than double UK investment spending to an extra £55bn a year. |
The Institute for Fiscal Studies has called into question where such an immediate increase in investment spending could be achieved. | The Institute for Fiscal Studies has called into question where such an immediate increase in investment spending could be achieved. |
Mr McDonnell branded the Conservative report a "ludicrous piece of Tory fake news" and an "incompetent mish-mash of debunked estimates and bad maths, cooked up because they know Labour's plans for real change are popular". | Mr McDonnell branded the Conservative report a "ludicrous piece of Tory fake news" and an "incompetent mish-mash of debunked estimates and bad maths, cooked up because they know Labour's plans for real change are popular". |
He added: "The Conservatives will be able to read all about these plans - and how much they actually cost - when we publish our fully-costed manifesto." | He added: "The Conservatives will be able to read all about these plans - and how much they actually cost - when we publish our fully-costed manifesto." |
The publication of the Conservative document comes after civil service head Sir Mark Sedwill blocked a Tory plan to use civil servants to cost the Labour Party's fiscal plans in a separate report. | The publication of the Conservative document comes after civil service head Sir Mark Sedwill blocked a Tory plan to use civil servants to cost the Labour Party's fiscal plans in a separate report. |
Sir Mark's decision came after Mr McDonnell complained vociferously to Treasury Permanent Secretary Tom Scholar. | Sir Mark's decision came after Mr McDonnell complained vociferously to Treasury Permanent Secretary Tom Scholar. |
'A political document' | 'A political document' |
This document is political rather than financial. The Conservatives' aim is to frame Labour's plans not as ambitious, but as unaffordable. | This document is political rather than financial. The Conservatives' aim is to frame Labour's plans not as ambitious, but as unaffordable. |
But the dossier assumes that all Labour's policies are firm commitments, and it does not examine Labour's revenue raising measures. | But the dossier assumes that all Labour's policies are firm commitments, and it does not examine Labour's revenue raising measures. |
John McDonnell has made no secret that Labour intends to borrow more than the Tories to invest - his political argument is that this would both grow the economy more rapidly and increase the state's assets not just its liabilities. | John McDonnell has made no secret that Labour intends to borrow more than the Tories to invest - his political argument is that this would both grow the economy more rapidly and increase the state's assets not just its liabilities. |
So in the end the calculation voters are likely to make is about who they trust more to run the economy. | So in the end the calculation voters are likely to make is about who they trust more to run the economy. |
Speaking about Labour's plans in Liverpool on Thursday, Mr McDonnell promised "investment on a scale never seen before" to overhaul infrastructure in all areas of the UK. | Speaking about Labour's plans in Liverpool on Thursday, Mr McDonnell promised "investment on a scale never seen before" to overhaul infrastructure in all areas of the UK. |
The shadow chancellor said he wanted to transfer power and money out of the south-east of England - and will fund his plans through borrowing. | The shadow chancellor said he wanted to transfer power and money out of the south-east of England - and will fund his plans through borrowing. |
He said his party would introduce new fiscal rules, meaning "borrowing for investment" would not be included in borrowing targets. | He said his party would introduce new fiscal rules, meaning "borrowing for investment" would not be included in borrowing targets. |
Labour's economic plan includes doubling "investment" spending, a £150bn "social transformation fund", and a £250bn "green transformation fund". | Labour's economic plan includes doubling "investment" spending, a £150bn "social transformation fund", and a £250bn "green transformation fund". |
The Tories have also vowed to borrow to fund more spending, rewriting their current financial rules. | The Tories have also vowed to borrow to fund more spending, rewriting their current financial rules. |